Cascades Inc. Operating Income Posted Notable Decline in Q2

SEATTLE (Scrap Monster): Cascades Inc. announced unaudited financial results for the three-month period ended June 30, 2021.

The company reported sales of $956 million, which is down marginally by 6% from $1,020 million in Q2 last year. The operating income registered significant fall by 64% from $64 million a year before to $23 million. The operating income before depreciation and amortization (OBID) too was down by 31% from $127 million to $87 million. Also, the net earnings from share dropped to $0.02, compared to $0.57 in Q2 2020.

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The adjusted operating income during the quarter was $34 million. Cascades reported adjusted OBID and adjusted net earnings per share of $98 million and $0.07. The quarterly dividend increased to $0.12 per share from $0.08 previously. The net debt as on 30^th June, 2021 stood at $1,707 million. The capital expenditures during the quarter were $65 million. Cascades projects the full year 2021 capital expenditure at around $400-$425 million.

Commenting on the results, Mario Plourde, President and CEO, Cascades noted that the company’s results were below expectations. The lacklustre results were mainly due to slump in performance by its tissue segment. The demand remained weak throughout the quarter, as a result of which the company had to curtail some tissue converting production in June, he said.